Nama set to lease docklands site

Nama is sounding out potential investors about a long leasehold interest in a 2.35 hectare site in Dublin’s docklands.

Under the lease, the purchaser would have the right to develop, manage, and realise the site. Nama will retain the freehold interest, thereby generating and maximising its return via a ground rent structure, it said in a statement.

“This is good news for the docklands and good news for Nama. It will introduce new investment into the area and open the door for further development in neighbouring sites,” said Nama CEO Brendan McDonagh.

A Bord Pleanála approved the fast track planning scheme for the 66ha docklands area on May 23. Nama plans to invest up to €1bn in the region in a mix of residential and commercial property developments.

The site being offered is beside the new Central Bank and which was formerly being developed as Anglo Irish Bank’s headquarters.

The strategic development zone requires a focus on employment within this block, and it is expected that about 160 new homes will be delivered as part of the overall development.

Nama will play a number of roles in the area in the coming years, including releasing sites for investors to develop and providing direct funding to debtors and receivers to support commercial and residential development.

The site consists of two separate parcels of land that were previously assembled by two Nama debtors acting independently of each other.

Following the agency’s decision to appoint receivers in both cases, Nama’s analysis showed the best financial return for the taxpayer would be achieved by combining these parcels into one site to create greater economies of scale and maximise the value of the overall site.